.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could boost in the second half of the year, yet he performs certainly not believe the U.S. is actually heading right into a recession.Global equities viewed stinging auctions recently as clients digested weak economical data out of the U.S. which reared fears concerning an economical decline worldwide's largest economic situation. It likewise questioned concerning whether the Federal Reserve needed to be a lot less hawkish along with its own monetary policy viewpoint. The central bank maintained rates on hold in overdue July at a 23-year high.When asked them about the overview for the united state economic condition, Ermotti mentioned: "Certainly not necessarily a downturn, yet undoubtedly a lag is achievable."" The macroeconomic signs are actually unclear adequate to refer to recessions, and in fact, it's possibly untimely. What we know is that the Fed has sufficient capacity to intervene and help that, although it's visiting take a while, whatever they perform to be after that transferred into the economic situation," the CEO told CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Book will reduce rates by a minimum of fifty manner points this year. Presently, traders are divided in between a 50 and a 25 manner factor cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are likely to see greater market volatility in the second one-half of the year, partly as a result of the united state political election in Nov." That is actually one factor, but additionally, if I examine the general geopolitical photo, if I take a look at the macroeconomic photo, what our experts saw in the last number of full weeks in relations to volatility, which, in my point of view, is actually a clear indication of the delicacy of some factors of the unit, u00e2 $ u00a6 one need to anticipate most definitely a much higher degree of volatility," he said.Another uncertainty going forward is monetary policy and whether reserve banks will definitely need to reduce fees more boldy to combat a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has cut prices twice this year. The International Central Bank and also the Bank of England possess both declared one slice until now." Knowing the celebrations which are actually theu00c2 unknowns on the horizon like the U.S. governmental vote-casting, our experts ended up being satisfied with an extremely reduced volatility, now our company are shifting to an even more usual regime," Bruno Verstraete, creator of Lakefield Wide range Administration said to CNBC Wednesday." In the context of UBS, [additional volatility is actually] not always a poor thing, due to the fact that additional dryness suggests additional exchanging profit," he included.